Water Economics and Governance


IWRM W4150 Water Economics and Governance
Exam Code 4150
Credit Points 5 ECTS
Term Summer
Module Coordination Prof. Sabine Schlüter
Lecturers Prof. Sabine Schlüter, Dr. Sudeh Dehnavi
Workload (h) 45 Attendance 105 Self-Study
Prerequisites None
Intended Learning Outcome  The student can evaluate setups for water pricing and water governance by

  • assessing the economic efficiency and socil impacts of water pricing methods
  • applying tools for water allocation optimization
  • calculating supply cost for  cost-recovery
  • comparative analysis of institutional setups in water governance

which enables the student to critically review international, national, regional and local water policies.

Content Introduction to Water Economics

  • Water Values
  • Basic Functions and Characteristics of Water Markets

Water Markets Economics of Water Supply

  • Unit Costs of Water and Cost Recovery in Water Utilities
  • The Role of the Public and the Private Sector in Water Supply
  • Economics of Irrigation Investments
  • Economics of Water Demand in Agriculture

Water Pricing in Agriculture

  • Scarcity Price
  • Cost Recovery

Optimization of Water Allocation – Introduction to the Linear Programming Approach

Urban Water Pricing and Regulation

Basics of Water Policy and Legislations

  • Historical Overview and Key Terms
  • State Interventions and Water as an economic good and a human right

Water Institutions and Administration

  • Institutions, Stakeholders, Roles and Responsibilities in the Water Sector
  • Development and Analysis of (National Water Polities)

Selected Issues on Water Sector Reform: (Decentralization, Performance etc.)

Transboundary Water Management and International Water Law

  • Fundamentals of International Water Law
  • European Water Framework Directive and River Basin Organizations
  • International Experiences on Transboundary Water Management: Case Studies from the Nile and Mekong
Teaching Method Lectures, Educational Movies and Third Party E-Learning Materials, In-Class Exercises, Self-Study, Students’ Presentation
Assesment Method Written Exam (100%)
Recommended Reading

Budds, J., McGranahan G 2003, Are the debates on water privatization missing the point? Experiences from Africa, Asia and Latin America, Environment and Urbanization Vol. 15, No 2, October, pages 87–113.FAO, 2001, Reform and Decentralization of Agricultural Services: A Policy Framework, Agricultural Policy and Economic Development Series 7, FAO Rome.

Global Water Partnership Technical Advisory 2004, Catalyzing Change: Handbook for developing IWRM and water efficiency strategies, GWP Stockholm

Patton, C., Sawicki, D. 1986, Basic methods of policy analysis and planning. NJ: Prentice-Hal

Rogers P., Hall A. 2003, Effective Water Governance, TAC background paper No.7, GWP Stockholm

The United Nations (UN) 2003, Better governance for development in the Middle East and North Africa: Enhancing inclusiveness and accountability World Bank, Washington, D.C

The World Bank (UN) 2006, Approaches to Private Participation in Water Services; A Toolkit; The World Bank, Washington, D.C.

UNDP (2006) Beyond Scarcity: Power, Poverty and the Global Water Crisis. UNDP, New York

USAID 2010, Promoting Stakeholder Participation in Water Services Delivery in Chlina, USAID.

Version 30.01.2014

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